This was a very good week for the financial markets with at least portions of every state opening for business for the first time since the lockdown began in early March.

All 3 major indexes were up for the week ended 2020-05-22. The Dow Jones Industrial average ended the week at 24,465 an increase of 3.3%. The broader S&P 500 index ended the week at 2,955 an increase of 3.2%. The Nasdaq 100 ended the week at 9,414 an increase of 2.9%. The average change for the major averages was up 3.12%.

The tech heavy Nasdaq composite continued its rise and is now up 4.9% for the year, the only index that is positive for the year. The S&P 500 is still down 8.5% year-to-date and the Dow Jones Industrial is down 14.3% for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 4.7%, with the iShares Dividend price climbing from $75.07 to $78.63.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 8.4% for the week while large-cap stocks increased by 3.2% and mid-cap stocks increased by 5.9%.

In order for us to monitor the performance difference between growth and value stocks, we look at the different capitalization levels (large, mid and small cap). In the latest week, there was a mixture in performance between growth and value stocks based on the capitalization of the underlying companies. Large-cap growth stocks outperformed large-cap value stocks this week 3.2% vs. 2.9%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 6.5% vs. 4.3%. Small-cap value stocks outperformed Small-cap growth stocks this week 9.3% vs. 5.9%.

Sector View

In spite of such a strong week for the markets there was still one sector that was negative, albeit slightly, for the week. This was a very big move forward this week with 10 of the 11 sectors increasing for the week and all but one of those increasing by over 3.5%.

After being the only sector that increased least week, the Healthcare sector is the only sector that lost ground this week. The sector declined by 0.14% on the week.

The market was lead this week by strong moves up in the Industrial sector (+7.46%), Real Estate (+7.05%), Energy (+6.92%), the Financials (+5.12%) and the Consumer Discretionary sector (+5.05%) on the news that pieces of all states have begun to reopen for business. The big stories for the forseeable future are likely to be related to how strong the growth is going to be coming out of this terrible second quarter, how quickly employment grows, and the number of businesses that fail to open after the lockdown is over.



Earnings Roundup

The bulk of the earnings season is behind us for the first quarter, but there were still some large companies reporting this week:

  • The Home Depot, Inc. (HD) announced earnings after the market close on 2020-05-19. Earnings came in at $2.08 the analyst consensus was $2.26, a difference of $-0.18 per share. Shares closed the prior day at $245.35 a share and closed the day at $238.10 a decline of -3.0%.
  • Medtronic Plc (MDT) announced earnings after the market close on 2020-05-21. Earnings came in at $0.58 the analyst consensus was $0.59, a difference of $-0.01 per share. Shares closed the prior day at $98.08 a share and closed the day at $95.41 a decline of -2.7%.
  • Nvidia Corporation. (NVDA) announced earnings after the market close on 2020-05-21. Earnings came in at $1.80 the analyst consensus was $1.69, a difference of $0.11 per share. Shares closed the prior day at $351.01 a share and closed the day at $361.05 an increase of 2.9%.
  • Walmart Inc. (WMT) announced earnings after the market close on 2020-05-19. Earnings came in at $1.18 the analyst consensus was $1.10, a difference of $0.08 per share. Shares closed the prior day at $127.66 a share and closed the day at $124.95 a decline of -2.1%.
  • Intuit Inc. (INTU) announced earnings after the market close on 2020-05-21. Earnings came in at $4.49 the analyst consensus was $4.47, a difference of $0.02 per share. Shares closed the prior day at $290.00 a share and closed the day at $287.61 a decline of -0.8%.
  • Lowes Companies. (LOW) announced earnings after the market close on 2020-05-20. Earnings came in at $1.77 the analyst consensus was $1.29, a difference of $0.48 per share. Shares closed the prior day at $116.87 a share and closed the day at $116.99 an increase of 0.1%.
  • Target Corporation. (TGT) announced earnings after the market close on 2020-05-20. Earnings came in at $0.59 the analyst consensus was $0.46, a difference of $0.13 per share. Shares closed the prior day at $123.17 a share and closed the day at $119.63 a decline of -2.9%.
  • The Tjx Companies. (TJX) announced earnings after the market close on 2020-05-21. Earnings came in at $-0.74 the analyst consensus was $-0.19, a difference of $-0.55 per share. Shares closed the prior day at $50.85 a share and closed the day at $54.30 an increase of 6.8%.


Dividend Payments

We are still catching up on our data production and are suspending this section for the week.



The Week Ahead

Big Economic and other data {or big events} being reported this week are:

  • Monday: US Markets are closed for Memorial Day
  • Tuesday: The Census Bureau reports new residential home sales for April with a forecast of 480,000 homes sold, a drop of 23.4% from March's total of 627,000
  • Wednesday:
  • Thursday: The Department of Labor reports initial jobless claims for the week ended 5/23 with 38 million people having filed for unemployment since mid March.
  • Thursday: the Bureau of Economic Analysis releases its second estimate of Q1 GDP with a seasonally adjusted estimate of -4.8%, which is unchanged from the first estimate.
  • Friday:

The earnings continue this week with the following companies reporting earnings:

  • Monday:
  • Tuesday: AutoZone, Bank of Nova Scotia
  • Wednesday: Autodesk, Bank of Montreal, HP, NetApp
  • Thursday: Costco, Dell Technologies, Dollar General, Salesforce
  • Friday:

Authors Note: Please note, the writer currently owns no individual stocks.

About the Writer

This page was created and is maintained by Kurt Tietjen, Founder of Stavera, High Peak Media & HomeGearWorks.com. Kurt is an executive, data scientist and software engineer who holds an MBA in Management Information Systems. In 2010, he partnered with scientists at Northwestern University to launch The Street Wire. This was one of the first mainstream uses of what would become “Narrative Science”, an artificial intelligence platform specializing in natural language generation. You can contact Kurt on LinkedIn here.